It seems all of that stimulus money has done a great job of… doing nothing while costing a fortune. In the month of June only 18,000 jobs were “created” which was below the estimated 90,000. Oh, unemployment increased a bit to boot, no surprise there:
Only 18,000 new jobs were created in the month, way below expectations of a 90,000 rise, which had been raised by strong private sector hiring figures released on Thursday.
The unemployment rate also rose, to 9.2% from 9.1% a month earlier.
Data for April and May was also revised down by a total of 44,000 jobs.
The poor result was driven by continuing layoffs by the public sector – where 39,000 jobs were lost – and a much weaker-than-expected 57,000 jobs created in the private sector.
First of all the term jobs created is a complete fallacy when those jobs are products of government interference in the market. Any idiot can tell you that jobs are not created by dumping money into a few favored industries but by employers who are doing well and need an increased labor force. When times are good people do business and that business creates a need for more laborers whom are then hired by employers.
The government seems to believe that simply throwing money into the banking system will somehow magically lead to increased business and thus more employment. That doesn’t work of course because employers are not likely to take loans to increase the number of employees if they have no need for more employees. The government is also doing its damnedest to prop up failing businesses in the hopes of keeping people employed at those businesses, well, employed. This doesn’t work though because people aren’t buying goods from those businesses which is what lead to their failure. You can dump as much money into a failing business as you want but it won’t make consumers want their products.
If the government wants to help the economy recover they’ll stop interfering. Of course that being the logical solution the government is likely to take a different route entirely:
The weak data has raised expectations that the US Federal Reserve may ultimately have to adopt a third programme of “quantitative easing” – buying up debts in order to pump cash into the economy – just as its second such programme has come to an end.
Ah yes, the classic government solution of, “If it doesn’t work just try again, only harder!”